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Class-B Multi-Tenant Office Market is Alive and Well

HOUSTON—The property, located at 8700 Commerce Park Drive, was recently sold to a local investor by Khoshbin Company out of Los Angeles.

By Lisa Brown | lisabrown | | Updated on March 22, 2016
Commerce Med Plaza Commerce was recently sold to a local investor by Khoshbin Company.
HOUSTON— Commerce Medical Plaza is a two-story, class-B multi-tenant medical office building with approximately 77,966 square feet of gross rentable area located on an approximately 3.4 acre parcel in the Southwest submarket. The property, located at 8700 Commerce Park Drive, off Highway 59 between S. Gessner and Bissonnet, was recently sold to a local investor by Khoshbin Company out of Los Angeles. The price was undisclosed. Currently 76.3% occupied by a recession-adverse tenant base consisting of 48% medical tenants, Commerce Medical Plaza provides an increasing cash flow due to scheduled rent bumps and significant income and value appreciation exists by leasing up currently available space. Doug Pack of NAI Partners and Logan Brown of Logan Brown Investment Real Estate negotiated the sale of the property on behalf of the seller. Pack tells GlobeSt.com: “This sale is a good indication that the class-B multi-tenant office market in Houston has not been impacted to the extent that the A market has in terms of investment sales activity to date. We are still seeing lots of interest from investors in class-B office product with a value-add component.” Built in 1974 with multiple upgrades in recent years, 8700 Commerce Park is suitable for tenants seeking a smaller atmosphere with a quiet outdoor space. The property’s amenities include views of the open-air atrium, security system, card-key access and manicured landscaping. The Southwest Freeway offers a traffic count of more than 250,000 cars per day. The office park’s location near the Westwood Country Club and Memorial Hermann Southwest Hospital has it surrounded by numerous hotel, retail and dining options. It is easily accessed by nearly all of Houston’ s major highway systems including Sam Houston Tollway (Beltway 8), Westpark Tollway, Loop 610 and Interstate 10 (Katy Freeway).  

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